ISLAMABAD – The mining experts Friday called for evolving a comprehensiveannual ‘Salt Export Policy ‘(SEP) to regularize country’s salt trade and todevelop a branding mechanism to sell the commodity in the internationalmarket on competitive prices.
Despite being world’s largest salt producer, Pakistan drags at number 20 inthe exporters’ category, and is unable to make its place in the lucrativeworld salt market.
Pakistan produces high-quality salt; popular in many countries due to itsred and pink varieties and was a preferred choice for use in daily diet. Itwas also utilized by different industries including construction,decoration, soap, saloon and health fitness and beauty industry.
“We need to stop the illegal trade and evolve proper “Salt export Policy”for regularizing the salt export and proper branding to sell in theinternational marker,” a senior official of Commerce Ministry told APPFriday.
However regretted that the absence of Global Indication Law (GIL) was acause of huge loss to the national economy as Pakistan could not directlyexport the commodity with its own branding.
“Illegal regional trade and absence of GIL was major cause of loss in saltindustry,” the official, who requested not be named.
He said private illegal traders and exporters were exporting raw salt fromthe country to regional countries, especially to India, where it wasbranded locally and exported as an Indian produce. The profit that couldhave been earned by Pakistan, goes to other countries, he lamented.
Highlighting the chronological developments, he said that before 2007, saltexport was regulated by the Pakistan Minerals Development Cooperation(PMDC), which was responsible for maintaining and regulating its prices andexports. However, later it was taken away from PMDC and handed over toprivate sector.
“The private sector exporters are now exploiting the situation and exportraw salt to India and other countries on less and non- regulated price,which has been causing losses to the country’s economy,” he said.
He said because of this practice by private companies’ the Pakistani saltwas not sold in international market with its own branding while India wastaking full advantage by using its own brand, as Pakistan lacks the GIL.
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He said despite huge reserves, Pakistan was ranked at 20th place in saltexport countries with annual $ 1.7 billion exports despite the fact that itwas among largest salt producing countries.
He said Pakistan had an estimated 700 miles salt range, the largest in theworld including those at Khewra, Warcha and Kalabagh.
He said China, United States, India and Germany were the largest saltexporter destinations of Pakistan, however pointed that Pakistan exportsonly raw salt and other countries sell the same using their own brand andearning huge foreign exchange.
Meanwhile, an official of the ministry said that the Intellectual PropertyOrganization (IPO) was in the process of formulating strict regulations todiscourage the illegal branding of Pakistani products by other countries ininternational market, particularly its salt and Basmati rice.
“The IPO is striving to get approve the Geographical Indication Law (GIL)from the parliament of Pakistan and if passed, it will restrict all theforeign companies to sell Pakistani salt and other products using theirtag,” he added.
Currently, some countries were selling Pakistan’s famous Khewra salt withtheir brand names in different countries which Pakistan wanted to curtailby making the required international legislation.
A senior official at IPO said that a draft of the legislation had beenforwarded to the law ministry for vetting and its onward tabling before theparliament for consideration.
